Alameda County Municipal Code Ch. 2.28 Special Tax to Support Children's Hospital Construction Program

A. The children of Alameda County are presently served by healthcare facilities that are not adequate and that must be upgraded. Those children with the most serious and deadly illnesses, like leukemia, cancer, heart defects, sickle cell anemia, diabetes, and cystic fibrosis, are primarily served by Children's Hospital and Research Center Oakland. This facility is old and new construction is required to address existing and future needs and to meet seismic standards required by state law.

B. The voters of California approved a statewide bond in 2004 (Proposition 61) making some funds available to eligible non-profit children's hospitals for hospital improvements and repairs. Unfortunately, the funds available to Alameda County are not nearly enough to repair or replace Alameda County's only children's hospital and improve the delivery of health care to children.

C. Children's hospitals are unique institutions because they provide both research and treatment of children and thus warrant the use of public funds to ensure continuation of this combination of services in the county.

D. Therefore, the board of supervisors of Alameda County declares and finds that it is in the public interest and necessary for the general health and welfare of the citizens of Alameda County, and in particular, its most vulnerable children, that additional funding be obtained and dedicated to the improvement of health care for children delivered through an eligible children's hospital.

(Ord. 2007-55 (part))

The "children's hospital fund" is hereby created as a special revenue fund. Proceeds from the children's hospital special tax, including penalties and interest earned on such proceeds, shall be deposited into the fund for allocation and appropriation by the board of supervisors pursuant to Section 2.28.040.

(Ord. 2007-55 (part))

"Children's hospital special tax" and "special tax" mean the tax authorized and imposed pursuant to Section 2.28.080.

"Eligible children's hospitals" mean general acute care hospitals located in the city of Oakland in Alameda County that have qualified for or are eligible to qualify for a grant of funds pursuant to the Children's Hospital Bond Act of 2004 (Part 6 (commencing with Section 1179.10) of Division 1 of the Health and Safety Code).

"Fund" means the children's hospital fund created pursuant to Section 2.28.020.

"Grant" means the distribution of money in the fund to an eligible children's hospital for projects pursuant to Section 2.28.050.

"Project" means constructing, expanding, remodeling, renovating, furnishing, equipping, or financing of an eligible children's hospital, or any combination thereof, including costs that would be capitalized under generally accepted accounting principles in connection with the project.

(Ord. 2007-55 (part))

A. Moneys in the children's hospital fund shall be used exclusively for grants made to improve the health and welfare of children by providing a stable and ready source of funds for capital projects to eligible general acute care children's hospitals located in the city of Oakland in Alameda County. Moneys in the fund shall also be used to reimburse the county as provided for in subsection C.

B. Grants shall only be made to eligible children's hospitals upon application as provided for in Section 2.28.050 and upon allocation and appropriation by the board of supervisors.

C. The county shall be reimbursed from the fund for the costs it incurs in relation to the special tax as follows:

1. One and seven-tenths percent of the special tax proceeds for collection of the special tax, plus the actual costs of the county that are caused by the administration of the special tax, such as for identifying taxable parcels and applying exemptions to parcels.

2. For actual costs associated with the administration of the fund, including, but not limited to, processing of grant applications and disbursement of proceeds of the special tax.

3. For actual costs associated with monitoring and enforcing compliance with this chapter, including, but not limited to, the cost of the citizens' oversight review committee, audit of uses and maintenance of use of the funds, and any expenses, including attorney's fees, associated with any proceedings needed to enforce the requirements of this chapter and of conditions imposed upon grants by the board of supervisors.

4. For actual costs, including attorney fees, associated with litigation in defense of the chapter, the award of a grant or any other action that may be undertaken by the county or grantee to implement this chapter or use funds provided by this special tax.

(Ord. 2007-55 (part))

A. The board of supervisors shall award grants to fund projects to eligible children's hospitals upon appropriate application as provided in subsection B. A grant may be issued in a lump-sum or periodically, at the discretion of the board of supervisors, in order to support or finance one or more projects. The county may approve grants for a period of years based on anticipated revenue from the special tax during that period, provided that the board shall not warrant the amount of proceeds of the special tax that would be available to grantee but have not yet been received. The board of supervisors may facilitate efforts of the grantee to secure long-term financing for the project. In approving this measure, the voters express their desire that the proceeds of taxes be used as provided in this chapter, and that such proceeds may be used by grantee to secure long-term financing if the board determines that doing so is in the best interest of the county.

B. The board of supervisors shall develop a written application for the awarding of grants under Section 2.28.040 within ninety (90) days of the adoption of this chapter. The board of supervisors shall award grants to eligible children's hospitals, subject to the limitations of this chapter and any other conditions imposed by the county to further the purposes of this chapter. The county shall consider the following factors in awarding a grant:

1. The grant will contribute toward expansion or improvement of health care access by children eligible for governmental health insurance programs and indigent, underserved, and uninsured children;

2. The grant will contribute toward the improvement of child health care or pediatric patient outcomes;

3. The applicant provides uncompensated or undercompensated care to indigent or public pediatric patients;

4. The applicant provides services to vulnerable pediatric populations;

5. The children's hospital promotes pediatric teaching or research programs;

6. Demonstration of project readiness and project feasibility;

7. The applicant has received funds from the state of California for the same project;

8. The applicant will contribute private funds, either donated to the hospital or from the hospital's own funds, towards the project;

9. The applicant has provided satisfactory guarantees that the promised use of grant proceeds will be maintained throughout the effectiveness of the special tax and that facilities constructed with the special tax proceeds will continue to meet the conditions set forth in subsections (B)(1)-(B)(6) of this section; and

10. The applicant has provided satisfactory guarantees that proceeds of the grant will not be used, directly or indirectly, to make funds available for operations or to construct facilities outside Alameda County.

C. An application for funds shall be submitted to the board of supervisors for approval as to its conformity with the requirements of this chapter. The board of supervisors shall process and award grants in a timely manner, not to exceed sixty (60) days.

D. In no event shall a grant to finance a project exceed the total cost of the project, as determined by the applicant and approved by the board of supervisors. Any funds unexpended upon completion of a project or because a project does not require all of the funds that have been granted, shall be returned by the grantee to the fund.

E. All projects that are awarded grants shall be completed within a reasonable period of time. A children's hospital receiving a grant under this chapter shall submit certification of project completion to the board of supervisors.

F. The board of supervisors may annually determine the amount available for purposes of this chapter.

(Ord. 2007-55 (part))

In accordance with the requirements of California Government Code Sections 50075.1 and 50075.3, the following accountability measures, among others, shall apply to the special tax levied in accordance with this measure:

A. The specific purposes of the special tax shall be those purposes identified above;

B. The proceeds of the special tax shall be applied only to those specific purposes identified above;

C. A separate, special account shall be created into which the proceeds of the special taxes must be deposited; and

D. The county's chief fiscal officer shall file an annual written report with the board of supervisors showing: (1) the amount of funds collected and expended from the proceeds of the special tax; and (2) the status of the projects authorized to be funded from the proceeds of the special tax, as identified above.

E. The board of supervisors shall establish an independent citizens' oversight committee which shall conduct an annual independent review to ensure that the special taxes have been expended only for the purposes set forth in this chapter.

(Ord. 2007-55 (part))

A. The county may audit the use of grant proceeds by a grantee in order to ensure that special tax proceeds have been properly used, including, but not limited to:

1. For the purposes stated in the application and in accordance with the requirements of this chapter and any other conditions imposed on the grantee by the board of supervisors;

2. Exclusively for projects within Alameda County; and

3. That special tax proceeds have not been used, directly or indirectly, to replace operating funds or to construct facilities outside Alameda County.

B. If the county determines that grant proceeds have been used, are currently being used, or will be used in a manner that is not consistent with the uses specified in subsection A of this section, then the county may undertake legal action against the grantee to recover funds that have been wrongly used and any benefit received by grantee from the wrongful use of grant proceeds, and to prohibit future expenditure of funds for such non-conforming uses. Any payment to the fund shall include interest on the funds recovered at a percentage rate equal to that rate which is received by funds deposited in the county treasury. In addition, the county shall be entitled to reimbursement from the fund for all expenses, including legal fees associated with such litigation.

(Ord. 2007-55 (part))

Upon approval of two-thirds of those voting to approve this chapter, commencing on July 1, 2008, and annually for a period not to exceed thirty-five (35) years, the county shall levy and collect a special tax on each parcel of real property within Alameda County for which the owner receives a separate ad valorem property tax bill, at the same time and manner, and subject to the same penalties and procedures as ad valorem property taxes collected by the county as follows:

A. On residential real property at a rate of twenty-four dollars ($24.00) per year for each residential parcel. A residential parcel is any parcel for which the owner receives an ad valorem property tax bill and receives or is otherwise eligible for a homeowners' property tax exemption under Article XIII, Section 3(k) of the Constitution of the State of California.

B. On small non-residential real property at a rate of one hundred dollars ($100.00) per year for each non-residential parcel and on large non-residential real property at a rate of two hundred fifty dollars ($250.00) per year for each non-residential parcel. Non-residential real property shall include all real property, improved or unimproved, if the property owner does not receive or is otherwise eligible for a homeowners' property tax exemption. Small non-residential real property is any parcel less than one acre in size, as determined according to the records of the Alameda County assessor. All other non-residential real property shall be deemed large non-residential real property.

C. If a parcel consists of both residential and non-residential real property, the rate shall be the rate for non-residential parcels.

D. Real property otherwise wholly exempted from ad valorem tax by state law shall also be exempted from any liability for the special tax imposed by this chapter.

E. The uses and sizes of all parcels shall be determined according to the records of the Alameda County tax assessor. For parcels divided by tax rate area lines, the payment for the portion of the parcel within Alameda County shall be calculated at the same rates as set forth above. For properties wholly within Alameda County and divided by tax rate area lines into multiple parcels, the property shall be taxed as a single parcel at the rates set forth above.

F. Exemptions. The county shall grant an exemption for any owner of a residential parcel tax if the owner is a person sixty-five (65) years of age or older, or very low income, under rules established by the county. The application process shall be self-certifying.

G. Early Termination of Tax. If no previously approved grant is operative and if no application for funds has been made for a period of two consecutive years by an eligible children's hospital, the board of supervisors may terminate the tax prior to the expiration of thirty-five (35) years. Upon the expiration of the special tax, the board of supervisors may use any moneys that shall remain in the fund for capital healthcare projects of the county.

H. Constitutional Spending Limit. Pursuant to Article XIIIB of the Constitution of the State of California and applicable laws, the appropriations limit for the county of Alameda is hereby increased by the aggregate sum authorized to be levied by this special tax for fiscal year 2008-09 and each year thereafter.

I. The county shall establish rules that are necessary and desirable for implementation of this chapter.

(Ord. 2007-55 (part))

A. If any provision of this chapter is held by any court or by any federal or state agency of competent jurisdiction, to be invalid as conflicting with any federal or state law, rule or regulation now or hereafter in effect, or is held by such court or agency to be modified in any way in order to conform to the requirements of any such law, rule or regulation, such provision shall be considered a separate, distinct, and independent part of the ordinance codified in this chapter, and such holding shall not affect the validity and enforceability of all other provisions hereof. In the event that such law, rule or regulation is subsequently repealed, rescinded, amended or otherwise changed, so that the provision thereof which had previously been held invalid or modified is no longer in conflict with such law, rule or regulation, said provision shall thereupon return to full force and effect and shall thereafter be binding.

B. If any section, subsection, phrase, clause, sentence, or word in the ordinance codified in this chapter shall for any reason be held invalid or unconstitutional by a court of competent jurisdiction, it shall not nullify the remainder of the ordinance codified in this chapter but shall be confined to the article, section, subsection, subdivision, clause, sentence or word so held invalid or unconstitutional.

(Ord. 2007-55 (part))

This measure may only be amended by a vote of the people pursuant to Elections Code Section 9125 except that the board of supervisors may amend this measure if necessary to assist a grantee in obtaining long-term financing for projects funded pursuant to this measure.

(Ord. 2007-55 (part))

This chapter, and all the provisions thereof, shall become effective only upon affirmative passage by a two-thirds majority vote of the eligible voters of this county pursuant to California Constitution, Article XIIIA, Sec. 2 and Article XIIIC, Sec. 2; California Government Code 53722; and Elections Code Section 9122.

(Ord. 2007-55 (part))